Belhaven to boost capacity and production as Greene King backs growth

Published on Saturday 22 May 2010 14:18

GREENE King is to invest in its Belhaven brewery to ramp up production at the Dunbar plant.

Belhaven, owned by Suffolk-based Greene King since 2005, is also reshuffling its management team as it seeks to continue its expansion in the ale market.

Belhaven Best has continued to gain ground over the past 12 months against a falling market, with volumes up 15 per cent. Its share of the Scottish ale market has grown from 17 per cent to 26 per cent over the year.

In several changes at the top of the firm, Jim Young, who joined Belhaven in 2001 from Scottish & Newcastle, has been promoted to managing director of Belhaven's drinks distribution business, replacing Bill Hughes, who will continue to work with the firm in a consultancy capacity.

George Howell, who joined Belhaven from Tennant Caledonian Breweries in 1992, takes over from Ian Herok as brewing director. Herok is leaving the firm for the International Centre of Brewing and Distilling at Heriot-Watt University.

Euan Venters, group managing director of Belhaven, said he was confident that the firm, which also operates more than 300 managed and tenanted pubs in Scotland, could continue to make progress this year, even though market conditions remain uncertain.

He said the Dunbar upgrade, which will be complete in February 2011, would improve both capacity and productivity – although he declined to give exact figures.

"This major investment in the facilities at Dunbar sends a strong message of support and underlines Greene King's on-going commitment to ensuring that high-quality, efficient brewing and kegging to Belhaven products continues here," Venters said.

He added that despite recent concerns over the future of the drinks industry in Scotland, the investment sends a "very strong signal about Belhaven remaining a Scottish business based in Scotland".

Belhaven was founded near Dunbar in 1719 but was bought by Greene King five years ago for 187 million.

Greene King reports full-year results in July, but according to its latest trading update last month, Belhaven's managed pubs estate achieved "industry-leading" like-for-like sales growth of 5.6 per cent in the 49 weeks to 11 April.

This compares with 3.6 per cent growth at the Greene King retail division south of the Border.

Greene King has advised that it is confident of meeting annual profit targets.

Belhaven increased its advertising activity last year to increase awareness of the Belhaven Best brand during the recession.